Some Chinese state-owned entities, backed by the key government agency that oversees major state industrial companies, have adopted a controversial defense when they face U.S. lawsuits – we enjoy sovereign immunity. Questions: 1. The article says that this policy is an indication of something much deeper. What is that? 2. The article mentioned Chinese audit… Read more »
Posts Categorized: Advanced Accounting
Fine Print – Gotcha!
Tara Zoumer thought she had found her dream job when she was hired at WeWork, a $16 billion start-up that rents office space to young entrepreneurs. As a salaried employee, she was soon asked to expand her duties to include many things that an hourly custodian should do. When she tried to get other employees… Read more »
Collateral damage
The government set up an elaborate sting operation to expose a network of recruiters for visa mills. The only problem was that some students claim that they thought the “honey trap” was a legitimate organization and were duped by the U.S. government. Questions: 1. Briefly explain the sting scheme. 2. After reading the article, do… Read more »
HUUUUGGGGGEEEEE Shift!
In an apparent rejection of the basic principles of the U.S. economy, a Harvard University poll shows that most young people do not support capitalism. Questions: 1. What percentage supported socialism? 2. Why are the results of the survey difficult to interpret? 3. What did the survey say about health insurance? 4. What did you… Read more »
Here we Go Again! Contracts for Deed!
In the 1930s through the 1960s, most African-Americans could not get mortgages. This was because the U.S. government deemed neighborhoods where they lived ineligible for federal mortgage insurance, which was the Depression-era innovation that made mortgages widely affordable. As a result, hucksters moved in and peddled homeownership through contracts for deed, where the home seller… Read more »
What a Heist!
Swift — the Society for Worldwide Interbank Financial Telecommunication — is billed as a supersecure system that banks use to authorize payments from one account to another. However, last week, Swift announced that hackers had captured $81 million from Bangladesh’s central bank in February and that other similar heists have been attempted. Questions: 1. According… Read more »
Security? Maybe not.
Under legislation passed by Congress in 2014, potential cuts are possible for the first time for financially distressed multi-employer pension plans who want to reduce benefits for retirees in order to improve the solvency of the fund. Questions: 1. Which fund is among the first to apply to take advantage of the legislation and who… Read more »
Fantasy Accounting?
According to the New York Times, a recent study shows that 90 percent of companies in the Standard & Poor’s 500-stock index reported non-GAAP results last year, which is up from 72 percent in 2009. Questions: 1. Do you think investors truly understand the consequences of this? 2. Which one of the tactics used do… Read more »
Beware: Don’t Push that Button
While some thought this was an April Fool’s joke, Amazon assured them that the new Dash Button is a serious device to buy that one item that you always need! Questions: 1. Approximately how many brands and how many devices does Amazon have on dash buttons? 2. What are the charges associated with a Dash… Read more »
Pet Valuation: A slippery slope or not?
The Monyak family decided to board their 2 dogs when they took a vacation in France. The Monyaks gave special instructions to the caretakers to give an anti-inflammatory prescription to one of the dogs. Unfortunately, the kennel gave it to the wrong dog who died from an overdose shortly after the family returned. The Monyak’s… Read more »